|
|
In
some cases, it's possible to have the seller pay all, or part, of the
closing costs. Closing costs are the fees charged by the lender,
government agency, or company handling the cost of closing the
transaction. These fees cover the cost of the appraisal, loan origination
fee, credit report, underwriting fee, attorney or title company fee, title
search, title insurance, survey, recording fees and other
costs.
Closing
costs can range from approximately 2 percent of the sales price to 6
percent of the sales price depending on the type of financing, type of
property, location of the property and optional or mandatory costs
required to purchase the property.
|
|
|
Three
Strategies
Chances are, you won't know the
seller's marketing strategy or motivation to sell. In some cases, sellers
won't take anything less than the asking price and will not pay for
closing costs. Other sellers price their property high and are willing to
accept a lower offer or pay for all or part of the closing costs. And
sometimes well-priced, well-located homes may sell for more than the
asking price with no seller concessions.
-
Consult
with your agent to come up with a strategy that best meets the demands
of the market. If you believe you may be able to negotiate with the
seller to pay closing costs, here are three strategies to consider.
Depending on the situation, all or none of them may be
effective.
-
Offer the
seller their full asking price and request that the seller pay the
closing costs. Include this request as part of the written purchase
agreement.
-
Offer the
seller more than their asking price and request, in writing, that they
pay all or part of the closing costs. Please note that you can only use
this strategy in situations where the financing and appraised value will
allow it.
-
Offer the
seller a price less than their asking price and request in writing that
the seller pay all or part of the closing costs. With this strategy, you
are expecting that the seller will counter offer at a higher price and,
hopefully, pay for all or part of your closing
costs. |
|
|
Veterans who
qualify for VA loans have another option as well, because VA loans allow
the seller to pay 100 percent of closing costs, including prepaid
items.
Depending on
the situation, it is possible to get the seller to pay for all or part of
your closing costs. I am an expert negotiator and I would be happy to help
you purchase your next home. Please contact me via email or
phone. |
|
|
|
